Real Prop

Question 1

Life Estate

Answer 1

vi. Restraints on Alienation – Modernly, provisions terminating life estates if the life tenant attempt to convey away the life estate are valid.

Question 2

Life Tenant and Mortgage Debt

Answer 2

Mortgage Debt – Life tenant MUST pay interest on any mortgage indebtedness on the property but is NOT required to make any principal payments. The holder of the future interest generally must pay the principal.

Question 3

Seisen

Answer 3

All freehold estate carry with them the concept of “seisin.” The holder of seisin is the taxpayer.

Question 4

Reversion in the Grantor

Answer 4

A reversion in the grantor arises whenever the Grantor conveys away less than the full durational estate that the Grantor had.
i. Freely transferable, devisable, and NOT subject to RAP

Question 5

Open class gift

Answer 5

b. Time for Vesting and the Rule of Convenience – Under a rule of convenience, the class closes for a class gift whenever any class member is entitled to a distribution, which generally occurs at the time the testator dies. Thus, later children lose out UNLESS they were in gestation at the time of testator’s death

Question 6

RAP

Answer 6

The Rule Against Perpetuities: No interest will be valid unless it must vest, if it is going to vest at all, within 21 years after the death of some life in being who was alive at the moment the conveyance was made.]

c. Applies to (1) executory interests, (2) contingent remainders, and (3) vested remainders subject to open.
d. The validity of an interest under RAP is determined at the time conveyance is made / at the time the interest is created.

Question 7

Tenants in Common

Answer 7

4. INCIDENTS OF CO-OWNERSHIP
   a. Possession – Each co-tenant has the right to possess the whole of the property, consistent with the same right in every other co-tenant. No one tenant has the right of exclusive possession.
   b. Accountability – One co-tenant does not have to account to another co-tenant for his share of the profits, subject to four exceptions.
   i. Four Exceptions where accounting is required:
5. Ouster – If one co-tenant is EITHER (1) keeping a co-tenant off the property, or (2) claiming a right of exclusive possession.
6. If the co-tenants have an agreement to share.
7. If the co-tenant Leases the property to a third party
8. If the co-tenant engages in depletion of natural resources.

Question 8

Transfer of land subject to mortgage

Answer 8

1. Rule Statement: When there has been a default, if Buyer took title “subject to” the mortgage, then Buyer is NOT personally liable and the Mortgagee must go after the Mortgagor. If Buyer “assumes” the mortgage, then Buyer is personally and primarily liable. However, the Mortgagor is also still liable. The Mortgagee will go after the Buyer first, and then can go after Mortgagor if the Buyer does not have enough money to pay.